united states of america, one painting entitled … · united states district court for the...

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA, Plaintiff, v. ONE PAINTING ENTITLED “SECRET DEPARTURE OF IVAN THE TERRIBLE BEFORE THE OPRICHINA,” Defendant.

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Civil Action No. 18-3015

VERIFIED COMPLAINT FOR FORFEITURE IN REM

COMES NOW, Plaintiff the United States of America, by and through the United States

Attorney for the District of Columbia, and brings this Verified Complaint for Forfeiture in Rem

against the defendant property, namely: one oil painting entitled “Secret Departure of Ivan the

Terrible Before the Oprichina” by Mikhail N. Panin (the “Defendant Property”), which is depicted

in Attachment A. The United States alleges as follows in accordance with Rule G(2) of the Federal

Rules of Civil Procedure, Supplemental Rules for Admiralty or Maritime Claims and Asset

Forfeiture Actions:

THE DEFENDANT PROPERTY

1. The Defendant Property is a Mikhail N. Panin oil painting entitled “Secret

Departure of Ivan the Terrible Before the Oprichina.” The Defendant Property is in the possession

of the Federal Bureau of Investigation (“FBI”).

NATURE OF ACTION AND THE DEFENDANT IN REM

2. This in rem forfeiture action arises out of an investigation by the FBI into the theft

of the Defendant Property stolen during the Second World War. The Defendant Property was

Case 1:18-cv-03015 Document 1 Filed 12/20/18 of 10

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subsequently transported in interstate commerce in violation of 18 U.S.C. § 2314 (Interstate

Transportation of Stolen Property) and 18 U.S.C. § 2315 (Possession of Stolen Goods).

3. The Defendant Property is subject to forfeiture pursuant to 18 U.S.C.

§ 981(a)(1)(C) as property constituting or derived from the proceeds of the interstate transportation

of stolen property and possession of stolen goods and 28 U.S.C. § 2461, which constitutes or is

derived from proceeds traceable to a violation of 18 U.S.C. §§ 2314 and 2315.

JURISDICTION AND VENUE

4. This Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1345 and 1355.

These statutes confer original jurisdiction to district courts of all civil actions, suits, or proceedings

commenced by the United States and any action for the forfeiture of property incurred under any

act of Congress.

5. Venue is proper pursuant to 28 U.S.C. § 1355(b)(1)(A) because acts or omissions

giving rise to the forfeiture occurred within the District of Columbia.

FACTS GIVING RISE TO FORFEITURE

I. Exchange of the Defendant Property

6. Person 1 and Person 2 are a married couple residing in Maine. In 1987, Person 1

purchased a home in Ridgefield, Connecticut. The Defendant Property, which measures

approximately 7.5 feet by 8.5 feet, conveyed with the home.

7. Owner 1 purchased the home from a married couple, Person 3 and Person 4, who

had purchased the home in 1962 from Person 5.

8. At the time of the 1962 conveyance of the home, the Defendant Property conveyed

with the house from Person 5 to Person 3 and Person 4.

9. Person 5 was a Swiss citizen who emigrated to the United States in 1946. After

purchasing the home from Person 5 in 1962, Person 3 and Person 4 located a certificate in the attic


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of the house commemorating Person 5’s service in the Swiss Army during the Second World War.

Person 5 passed away in 1986.

10. In 2017, Person 1 and Person 2 consigned the Defendant Property for auction.

II. Attempted Sale of the Defendant Property

11. In 2017, the Defendant Property traveled to the Washington, D.C. metropolitan area

for the attempted sale of the Defendant Property. Person 1 and Person 2 hired a company to

transport the Defendant Property due to the size and physical condition of the painting.

12. The Defendant Property was scheduled to be auctioned on November 18, 2017 and

was published in the auction’s house catalogue.

13. On November 17, 2017, an employee of the auction house received an email from

the Dnepropetrovsk State Art Museum. The email stated, in part:

Attention! Painting “Ivan the Terrible” was in the collection of the Dnepropetrovsk Art Museum until 1941 and was stolen during the Second World War. The museum documentation confirms this fact. Please stop selling this painting at auction!!! According the international rules of restitution of stolen works of art, the picture should return to Ukraine. 14. On December 29, 2017, the auction house received a further email from the

Director of the Dnepropetrovsk State Art Museum stating, in part:

The painting of Mikhail Panin (1877-1963) “Ivan the Terrible” dated of 1911 was a diploma work of the artist, was transferred from the St. Petersburg Academy of Arts in 1913 to the collection of Ekaterinoslav City Art Museum (today the Dnepropetrovsk Art Museum), was among the 64 exhibits that compiled the first museum exposition in 1914, was exhibited at the permanent exhibition of the museum until 1941 and disappeared during the occupation of the city during the Second World War. We have black-white photos and documents of the museum’s funds [sic]. 15. Law enforcement obtained records from the Embassy of Ukraine in Washington,

D.C., which provided supporting documentation regarding the authenticity of the Defendant

Property.


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16. Law enforcement subsequently seized the defendant property for violations of the

above statutes.

17. Law enforcement has contacted Person 1 and Person 2 regarding the sale of the

Defendant Property. Person 1 and Person 2 have agreed to waive any claim to the Defendant

Property, and have agreed that it should be returned to the Government of Ukraine.

FIRST CLAIM FOR RELIEF (18 U.S.C. § 981(A)(1)(C))

(Proceeds of the Interstate Transportation of Stolen Property, 18 U.S.C. § 2314)

18. The United States incorporates by reference the allegations set forth in Paragraphs

1 to 17 above as if fully set forth herein.

19. The Defendant Property, which was valued at more than $5,000, was transported

in interstate commerce after it had been stolen, in violation of 18 U.S.C. § 2314.

20. As such, the Defendant Property is subject to forfeiture, pursuant to 18 U.S.C.

§ 981(a)(1)(C), as property constituting or derived from proceeds of the interstate transportation

of stolen property.

SECOND CLAIM FOR RELIEF (18 U.S.C. § 981(A)(1)(C))

(Proceeds of Possession of Stolen Goods, 18 U.S.C. § 2315)



22. The Defendant Property, which was valued at more than $5,000, was possessed

after it had been stolen and after it had been moved across state boundaries, in violation of 18

U.S.C. § 2315.


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§ 981(a)(1)(C), as property constituting or derived from proceeds of the possession of stolen

goods.

THIRD CLAIM FOR RELIEF (19 U.S.C. § 1595(C)(1))

(Unlawful Importation, 19 U.S.C. § 1595(c))



25. The Defendant Property is merchandise that was introduced into the United States

contrary to law.


§ 1595(c)(1).

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PRAYER FOR RELIEF

WHEREFORE, the United States of America prays that notice issue on the Defendant

Property as described above; that due notice be given to all parties to appear and show cause why

the forfeiture should not be decreed; that a warrant of arrest in rem issue according to law; that

judgment be entered declaring that the Defendant Property be forfeited for disposition according

to law; and that the United States of America be granted such other relief as this Court may deem

just and proper, together with the costs and disbursements of this action.

Dated: December 20, 2018 Respectfully submitted,

JESSIE K. LIU, D.C. Bar No. 472845 United States Attorney

By: /s/

ZIA M. FARUQUI, D.C. Bar No. 494990 ARVIND K. LAL, D.C. Bar No. 389496 BRIAN HUDAK, N.Y. Bar Assistant United States Attorneys 555 Fourth Street, NW Washington, DC 20530 (202) 252-7117 Attorneys for the United States of America


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VERIFICATION

I, Marc Hess, a Special Agent with the Federal Bureau of Investigation, declare under

penalty of perjury, pursuant to 28 U.S.C. § 1746, that the foregoing Verified Complaint for

Forfeiture In Rem is based upon reports and information known to me and/or furnished to me by

other law enforcement representatives and that everything represented herein is true and correct.

Executed on this __20th___ day of December, 2018. ___/s/______________________________ Marc Hess Special Agent Federal Bureau of Investigation


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Attachment A

Painting as it appears today


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Painting as it appeared in Dnepropetrovsk State Art Museum circa 1929


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Painting as it appeared in Dnepropetrovsk State Art Museum circa 1929


CIVIL COVER SHEET JS-44 (Rev. 5/12 DC) I. (a) PLAINTIFFS

(b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF _____________________(EXCEPT IN U.S. PLAINTIFF CASES)

DEFENDANTS

COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT _____________________(IN U.S. PLAINTIFF CASES ONLY)

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED

(c) ATTORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER) ATTORNEYS (IF KNOWN)

II. BASIS OF JURISDICTION (PLACE AN x IN ONE BOX ONLY)

III. CITIZENSHIP OF PRINCIPAL PARTIES (PLACE AN x IN ONE BOX FOR PLAINTIFF AND ONE BOX FOR DEFENDANT) FOR DIVERSITY CASES ONLY!

o 1 U.S. Government Plaintiff

o 2 U.S. Government Defendant

o 3 Federal Question (U.S. Government Not a Party)

o 4 Diversity (Indicate Citizenship of Parties in item III)

Citizen of this State

Citizen of Another State

Citizen or Subject of a Foreign Country

PTF

o 1

o 2

o 3

DFT

o 1

o 2

o 3

Incorporated or Principal Place of Business in This State

Incorporated and Principal Place of Business in This State

Foreign Nation

PTF

o 4

o 5

o 6

DFT

o 4

o 5

o 6

IV. CASE ASSIGNMENT AND NATURE OF SUIT (Place an X in one category, A-N, that best represents your Cause of Action and one in a corresponding Nature of Suit)

o A. Antitrust

410 Antirust

o B. Personal Injury/ Malpractice

310 Airplane 315 Airplane Product Liability 320 Assault, Libel & Slander 330 Federal Employers Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product Liability 360 Other Personal Injury 362 Medical Malpractice 365 Product Liability 367 Health Care/Pharmaceutical Personal Injury Product Liability 368 Asbestos Product Liability

o C. Administrative Agency Review

151 Medicare Act

Social Security 861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405(g)) 864 SSID Title XVI 865 RSI (405(g))

Other Statutes 891 Agricultural Acts 893 Environmental Matters 890 Other Statutory Actions (If Administrative Agency is Involved)

o D. Temporary Restraining Order/Preliminary Injunction

Any nature of suit from any category may be selected for this category of case assignment.

*(If Antitrust, then A governs)*

o E. General Civil (Other) OR o F. Pro Se General CivilReal Property

210 Land Condemnation 220 Foreclosure 230 Rent, Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property

Personal Property 370 Other Fraud 371 Truth in Lending 380 Other Personal Property Damage 385 Property Damage Product Liability

Bankruptcy 422 Appeal 27 USC 158 423 Withdrawal 28 USC 157

Prisoner Petitions 535 Death Penalty 540 Mandamus & Other 550 Civil Rights 555 Prison Conditions 560 Civil Detainee – Conditions of Confinement

Property Rights 820 Copyrights 830 Patent 840 Trademark

Federal Tax Suits 870 Taxes (US plaintiff or defendant) 871 IRS-Third Party 26 USC 7609

Forfeiture/Penalty 625 Drug Related Seizure of Property 21 USC 881 690 Other

Other Statutes 375 False Claims Act 400 State Reapportionment 430 Banks & Banking 450 Commerce/ICC Rates/etc. 460 Deportation462 Naturalization Application 465 Other Immigration Actions 470 Racketeer Influenced & Corrupt Organization

480 Consumer Credit 490 Cable/Satellite TV 850 Securities/Commodities/ Exchange 896 Arbitration 899 Administrative Procedure Act/Review or Appeal of Agency Decision 950 Constitutionality of State Statutes 890 Other Statutory Actions (if not administrative agency review or Privacy Act)

United States of America ONE PAINTING ENTITLED “SECRET DEPARTURE OFIVAN THE TERRIBLE BEFORE THE OPRICHINA,”

Zia M. Faruqui, Assistant U.S. AttorneyU.S. Attorney's Office for the District of Columbia555 Fourth Street, N.W.Washington, D.C. 20530

Unknown

Case 1:18-cv-03015 Document 1-1 Filed 12/20/18 Page 1 of 2

o G. Habeas Corpus/ 2255

530 Habeas Corpus – General 510 Motion/Vacate Sentence 463 Habeas Corpus – Alien Detainee

o H. Employment Discrimination

442 Civil Rights – Employment (criteria: race, gender/sex, national origin, discrimination, disability, age, religion, retaliation)

*(If pro se, select this deck)*

o I. FOIA/Privacy Act

895 Freedom of Information Act 890 Other Statutory Actions (if Privacy Act)

*(If pro se, select this deck)*

o J. Student Loan

152 Recovery of Defaulted Student Loan (excluding veterans)

o K. Labor/ERISA (non-employment)

710 Fair Labor Standards Act 720 Labor/Mgmt. Relations 740 Labor Railway Act 751 Family and Medical Leave Act 790 Other Labor Litigation 791 Empl. Ret. Inc. Security Act

o L. Other Civil Rights (non-employment)

441 Voting (if not Voting Rights Act) 443 Housing/Accommodations 440 Other Civil Rights 445 Americans w/Disabilities – Employment 446 Americans w/Disabilities – Other 448 Education

o M. Contract

110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of Overpayment & Enforcement of Judgment 153 Recovery of Overpayment of Veteran’s Benefits 160 Stockholder’s Suits 190 Other Contracts 195 Contract Product Liability 196 Franchise

o N. Three-JudgeCourt

441 Civil Rights – Voting (if Voting Rights Act)

V. ORIGIN

o 1 Original Proceeding

o 2 Remand from State Court

o 3 Remanded from Appellate Court

o 4 Reinstated or Reopened

o 5 Transferred from another district (specify)

o 6 Multi-district Litigation

o 7 Appeal to District Judge from Mag. Judge

VI. CAUSE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE.)

VII. REQUESTED IN COMPLAINT

CHECK IF THIS IS A CLASSACTION UNDER F.R.C.P. 23

DEMAND $ JURY DEMAND:

Check YES only if demanded in complaint YES NO

VIII. RELATED CASE(S) IF ANY

(See instruction) YES NO If yes, please complete related case form

DATE: _________________________ SIGNATURE OF ATTORNEY OF RECORD _________________________________________________________

INSTRUCTIONS FOR COMPLETING CIVIL COVER SHEET JS-44 Authority for Civil Cover Sheet

The JS-44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and services of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. Listed below are tips for completing the civil cover sheet. These tips coincide with the Roman Numerals on the cover sheet.

I. COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF/DEFENDANT (b) County of residence: Use 11001 to indicate plaintiff if resident of Washington, DC, 88888 if plaintiff is resident of United States but not Washington, DC, and 99999 if plaintiff is outside the United States.

III. CITIZENSHIP OF PRINCIPAL PARTIES: This section is completed only if diversity of citizenship was selected as the Basis of Jurisdictionunder Section II.

IV. CASE ASSIGNMENT AND NATURE OF SUIT: The assignment of a judge to your case will depend on the category you select that best represents the primary cause of action found in your complaint. You may select only one category. You must also select one corresponding nature of suit found under the category of the case.

VI. CAUSE OF ACTION: Cite the U.S. Civil Statute under which you are filing and write a brief statement of the primary cause.

VIII. RELATED CASE(S), IF ANY: If you indicated that there is a related case, you must complete a related case form, which may be obtained from the Clerk’s Office.

Because of the need for accurate and complete information, you should endure the accuracy of the information provided prior to signing the form.

/s/Zia M. Faruqui

18 U.S.C. § 981(a)(1)(C)- civil forfeiture of property derived from proceeds of ITSP/stolen goods

✘

✘

12/20/2018


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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA, : c/o United States Attorney=s Office : Judiciary Center Building : 555 4th Street, N.W. : Washington, D.C. 20530, :

: Plaintiff, :

v. : Civil Action No. 18-3015 :

ONE PAINTING ENTITLED “SECRET : DEPARTURE OF IVAN THE TERRIBLE : BEFORE THE OPRICHINA,” :

: Defendant. :

__________________________________________:

WARRANT FOR ARREST IN REM TO: THE UNITED STATES MARSHAL=S SERVICE AND/OR ANY OTHER DULY AUTHORIZED LAW ENFORCEMENT OFFICER:

WHEREAS a Verified Complaint for Forfeiture In Rem has been filed in the United States District Court for the District of Columbia, on the 20th day of December, 2018, alleging that the defendant property is subject to seizure and forfeiture to the United States pursuant to 18 U.S.C. ' 981(a)(1)(C);

YOU ARE, THEREFORE, HEREBY COMMANDED to serve the defendant property, thus bringing, within the jurisdiction of the Court, the said defendant property, more fully described as:

ONE PAINTING ENTITLED

“SECRET DEPARTURE OF IVAN THE TERRIBLE BEFORE THE OPRICHINA,”

YOU ARE FURTHER COMMANDED to provide notice of this action to all persons

thought to have an interest in or claim against the defendant property by serving upon such persons a copy of this warrant and the Verified Complaint In Rem, in a manner consistent with the principles of service of process of an action in rem under the Supplemental Rules for Certain Admiralty and Maritime Claims and Asset Forfeiture Actions, and the Federal Rules of Civil Procedure.


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YOU ARE FURTHER COMMANDED, promptly after execution of this process, to file the same in this Court with your return thereon, identifying the individuals upon whom copies were served and the manner employed. Dated: December ____, 2018

___________________________ Clerk of the Court

By: ___________________________ Deputy Clerk


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